Question 9 Chapter 2 of +2-A - T.S. Grewal 12 Class Part

Question 9 Chapter 2 of +2-A

Table of Contents

The solution of Question 9 Chapter 2 of +2-A:

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

9. Bat and Ball are partners sharing the profits in the ratio of 2 : 3 with capitals of ₹ 1,20,000 and ₹ 60,000 respectively. On 1st October 2018, Bat and Ball gave loans of ₹ 2,40,000 and ₹ 1,20,000 respectively to the firm. Bat had allowed the firm to use his property for business for a monthly rent of ₹ 5,000. The loss for the year ended 31st March 2019 before rent and interest amounted to ₹ 9,000. Show the distribution of profit/loss.

The solution of Question 9 Chapter 2 of +2-A:

Profit and Loss Appropriation Account A/c for the year ended 31st March 2019
Particulars	Amount	Particulars	Amount
To Profit and Loss A/c	9,000	By Bat’s Capital A/c	31,920
To Rent A/c (5000 X 12)	60,000	79,800 × 2/5
To Interest on Bat’s Loan	7,200	By Ball’s Capital A/c	47,880
To Interest on Ball’s Loan	3,600	79,800 × 3/5
	79,800		79,800

Working Note: –

Calculation of Total Interest on Bat’s Loan
Interest on Loan from Bat = Value of Loan X Rate of Interest X Period
Value of Loan = 2,40,000
Rate of Interest = 6%
Period = from 01/10/18 to 31/03/19 i.e. 6 months
(Date of Loan Taken to the end of Financial year.)
= 2,40,000 X 6/100 X 6/12
Total Interest on A’s Loan = 7,200/-
Calculation of Total Interest on Ball’s Loan
Interest on Loan from Ball = Value of Loan X Rate of Interest X Period
Value of Loan = 1,20,000
Rate of Interest = 6%
Period = from 01/10/18 to 31/03/19 i.e. 6 months
(Date of Loan Taken to the end of Financial year.)
= 1,20,000 X 6/100 X 6/12
Total Interest on B’s Loan = 3,600/-

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
Chapter No. 3 – Goodwill: Nature and Valuation
Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
Chapter No. 5 – Admission of a Partner
Chapter No. 6 – Retirement/Death of a Partner
Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Chapter No. 8 – Company Accounts – Accounting for Share Capital
Chapter No. 9 – Company Accounts – Issue of Debentures
Chapter No. 10 – Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Chapter No. 1 – Financial Statements of a Company
Chapter No. 2 – Financial Statement Analysis
Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
Chapter No. 4 – Accounting Ratios
Chapter No. 5 – Cash Flow Statement

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